Ann: Non-Renounceable Entitlement Issue, page-201

OK. it appears the BMZ board are obviously intent on pursuing the phosphate asset. as I previously posted, the grades for the previous six diamond drill holes were reasonably good (although not DSO). also, the deposit is near surface & is quite thick

BMZ has said:

19 February 2018
Analyses of the soil samples identified up to 3km of strike extent of phosphate mineralisation likely between Busumbu and the Namekara Vermiculite Mine. It also indicated a “substantial phosphate mineralisation footprint for future exploration”. The Company is proposing to complete further detailed exploration work at the Busumbu Phosphate Project including, resource definition drilling, preliminary mine planning and optimisation studies, broad sampling and metallurgical test work and preliminary processing plant optimisation studies. The project is considered to be one of two “world-class” phosphate deposits in Uganda and is a key focus of the Company. The Company will commence a pre-feasibility study in Q3 2018, upon completion of the initial resource drilling program Q1 2018 and anticipates completing this study late in 2018. Exploration for copper and rare earths mineralisation will also be pursued.

5 April 2018
BMZ preparing exploration program for the Bukusu Carbonatite complex which hosts the Busumbu Phosphate Mine, the mapped and sampled Ngala hills copper prospect as well as identified anomalies for rare earths metals (Bukusu Complex). The Company is pleased to advise that it has raised $500,000 by way of convertible note. Funds will be used for working capital (including the recently announced restructure transaction), exploration on the Bukusu Complex and investigating additional potential synergistic farm-in opportunities. The Busumbu Phosphate Project is located less than 30km from the Sukulu Phosphate Project, where Chinese firm, The 23rd Metallurgical Construction Group Co Ltd started construction in 2014 of a US$620M phosphate mine and integrated fertiliser facility, rare earths project and power station. The results enabled Gulf to estimate “the potential dimensions of the prospect to be in excess of 3km by 400m” and the drilling “confirms high-grade mineralisation to a depth of over 60m with assay grades of up to 30.5% P2O5.”

12 April 2018


DDZX NOTE: the potential size of the deposit is 3,000m x 400m x 35m x 1.7 bulk density = 70 million tonnes @ 22%

Compare to:

Phosphate Hill (Qld) [economic due to proximity to Mt Isa]: Incitec Pivot Limited, a publically listed company on the Australian Stock Exchange, does not to publish resource figures. The last publically available JORC compliant resource for Phosphate Hill dates from BHP Billiton's Annual Report 2006 and quotes a Proven Reserve of 29 Mt at 24.6% P₂O₅ and a Probable Reserve of 52 Mt at 24.3% P₂O₅.

Wonarah (NT) [uneconomic due to remoteness; high transport costs]: Minemakers Limited released an updated resource estimate for the Wonarah phosphate deposit in October 2012 as part of a feasibility study. The company claims it is Australia's largest undeveloped rock phosphate project. It has a Measured and Indicated Resource of 300 Mt at 18.3% P₂O₅ and an Inferred Resource of 542 Mt at 18% P₂O₅.... includes JORC -compliant resource of 72 million tonnes grading at 23 percent phosphate at a cut off of 15 percent phosphate



IN CONCLUSION:

1. It appears BMZ are intent on pursuing the phosphate project

2. A positive aspect of the phosphate project is it is near the $620M Chinese Sukulu Phosphate Project (although the compatibility of the respective deposits needs to be determined (@saggy; @Scubadvr @pangea @Basumal refer to text below)

3. The potential size of the phosphate is certainly "world class" although it is not the preferred DSO (direct shipping ore 30%+ grade) thus will require large CAPEX to build a benefaction plant unless the ore is suitable for the Sukulu project

4. At this stage, the lithium is subject to due diligence and minimal funds have been allocated towards the lithium. Thus, if the lithium due diligence is favorable I would imagine another capital raising will occur at a higher price to support exploration of the lithium

5. Jason Brewer, prior to the recent lithium announcement, held 5.5M shares or 3.4% of BMZ

6. OK. unlike the wild uninformed speculations of @Captain Blood, this post is at least a rationale assessment, based on information available so far

time for bed

From British Geological Survey 2002